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A crypto bear market is when crypto markets have lost a significant amount of value over a period of time, where everyone is saying crypto is dead and it will never come back.

But crypto bear markets are actually the best times to accumulate crypto, since prices tend to be at their lowest during these times. 

And because crypto tends to grow exponentially, even with low prices, you can still make money if your coins increase in value over time.

Make money during crypto bear market

This was observed during the last crypto bear market in 2018, bitcoin only went from $20k USD all the way down to $3-4k before increasing significantly again after this year long crypto bear market.

If you purchased Bitcoin in 2019, when the bears were down and the sentiment was most negative, then your crypto investment would have been worth thousands more than if you bought it at its peak.

So crypto bear markets are ideally a great opportunity to buy crypto at low prices, and make money later after crypto gets adopted more widely with mass adoption.

And since crypto is still in it’s earliest stages of adoption, crypto prices are likely to go up even further in the coming years & decades.

Is the bear market the best time to buy?

The crypto market has been through a bear market. This is when crypto markets experience prolonged periods of negative sentiment, where many people are saying that crypto will never come back and prices drop significantly as a result.

Even with great news and headlines, an overbought coin won’t budge in value during a bear market. 

While this is likely painful for crypto investors who like many others were saying crypto is dead and got in at the worse times, if those investors held, they are sitting pretty with multi-hundred percent growth.

Don’t fear the bear markets

Crypto bear markets are actually not something to fear, but more an opportunity to get into crypto at its lowest price point before it grows exponentially again in the coming years.

Providing you have the funding to let your money sit in a digital asset and not disrupt your daily life, investing in crypto during a bear market has proven time and time again to offer huge gains to those who are educated and patient.

How long does a bear market last?

Crypto bear markets last for varying periods of time depending on the crypto market you’re talking about and other factors like how much it’s being adopted by mainstream businesses & stores etc. The crypto bear markets tend to last longer sometimes in smaller crypto market cap coins, while others are shorter because they’re already fully adopted by a lot of mainstream businesses and services which bring more traders into the space as a result.

Keep in mind that Bitcoin leads the charge for crypto trends.

Due to small market caps, it requires less capital to move crypto prices, so crypto bear markets that play out in small crypto market cap coins can last longer than crypto bear markets for larger crypto market cap coins like Bitcoin, since it takes much less capital to move crypto prices when the crypto is smaller.

But since all crypto tends to trend upwards over time as adoption increases regardless of whether you’re talking about the top 10 crypto or even the smallest altcoins, there will always be an upward trend on charts which is why I suggest holding and buying during a crypto bear market if you have the funding.

When does the crypto bull market come?

Once crypto goes through its period of adoption where more and more mainstream companies and online services start accepting crypto (when people can buy things with crypto on Amazon, eBay etc.), then crypto will experience a bullish run as a result.

Right now we are in a speculative phase and during this time anything can happen. Once too many investors have bought into crypto at already high prices because they were afraid of missing out (because they see other people making money in crypto), nearly all the gains from hereon out will be small compared to previous periods of growth.  

How to predict a bear market

You can’t really predict a bear market but there are a number of things to pay attention to in crypto news / social media that often give signals that will tell you when the next crypto bear market is likely coming:

  • There are low crypto transaction volumes
  • The crypto market is not expanding more, even though crypto markets generally grow over time.
  • Significant crypto selloffs, crypto has room to grow and at this point crypto should be expanding more.
  • Specific crypto prices are near the bottom of crypto price charts

final thoughts

Crypto bear markets are one of crypto’s most significant traits. Although they can be scary and cause uncertainty, these periods are actually really lucrative opportunities to get in crypto at the lowest price possible before it ramps up again over time.

Keep an eye on crypto news for signals that a crypto bear market is coming soon so you know when its best to enter crypto or sell off your holdings.

CryptoWhat was created in 2015 and has become one of the most trusted and well-respected sources of information on all things crypto. The blog's authors are dedicated to providing clear, concise, and jargon-free explanations of this complex technology, so that everyone can understand it.